CVM Chief: Brazilian CBDC Drex to ‘Kill’ Many Cryptocurrencies

João Pedro Nascimento, president of the Brazilian Securities and Exchange Commission (CVM), believes that drex, the Brazilian cardinal slope integer currency (CBDC), volition “kill” galore cryptocurrencies. While established cryptocurrencies similar bitcoin and ethereum volition support being utilized successful the country, drex volition interaction the adoption of smaller and less-known crypto projects, Nascimento stated.

CVM President: Brazilian CBDC Drex to End Lesser Cryptocurrencies

The Brazilian authorities has precocious hopes for the aboriginal of drex, the Brazilian cardinal slope integer currency (CBDC). João Pedro Nascimento, the caput of the Brazilian Securities and Exchange Commission (CVM), stated that the issuance of drex volition termination galore cryptocurrencies owed to respective factors.

During a fiscal symposium, Nascimento stated that portion larger and already established cryptocurrencies volition beryllium safe, drex volition sip distant attraction from lesser-known cryptocurrency projects by offering galore of their functionalities successful conscionable 1 token.

He clarified:

I’m not talking astir Bitcoin, but drex volition trim the attractiveness of smaller cryptocurrencies.

This is due to the fact that drex aims to see galore of the advantages that cryptocurrencies connection today, similar astute contracts programmability and enactment with existing structures owed to its Ethereum-compatible origins, combined with the velocity and practicality of developed distributed ledger technologies (DLT). According to earlier reports, drex is expected to beryllium launched adjacent year.

A Different Approach to Crypto Regulation

While different regulators person adopted a hard stance against cryptocurrencies, the CVM promotes a much flexible approach. Nascimento emphasized that portion technological innovations request regulation, this should beryllium done inclusively, identifying opportunities to integrate these technologies alternatively of stifling innovation.

Nascimento explained:

Every clip quality beings person tried to halt innovations, they person failed. I recognize that we person to spot opportunities successful caller things and effort to bring these caller things to marketplace adherence.

Nascimento defended the emergence of a regulated cryptocurrency economy, bringing each the “good” actors of the assemblage nether the law. The alternate to this includes pushing them into a marginal marketplace wherever risks derived from their actions volition beryllium generated without the accidental to power imaginable antagonistic occurrences similar wealth laundering and taxation evasion.

Finally, helium stated that his attack was besides shared by important figures of the Brazilian government, including Ricardo Leal, president of the Financial Activities Control Council (COAF), and Economy Ministry Executive Secretary Dario Durigan.

What bash you deliberation astir the statements of CVM president João Pedro Nascimento connected drex and his stance connected the upcoming regularisation of the Brazilian cryptocurrency economy? Tell america successful the comments conception below.